Originally published at: This week in charts: Trump vs Musk – InvestEngine Insights
Despite the volatility experienced in equity markets earlier this year, global stocks have had their best month since 2023. Easing inflation and renewed trade tensions helped to boost stocks for the month.
Source: Bloomberg
Geopolitical concerns after President Trump criticized China’s compliance with trade agreements, rekindling fears of trade friction continue to be a concern for markets. Investors are now closely monitoring upcoming economic data and Fed signals to gauge the future trajectory of interest rates and market momentum.
Source: Bloomberg
The European Central Bank reduced its key interest rate from 2.25% to 2%, marking the eighth consecutive quarter-point cut within a year. This decision aims to stimulate the eurozone’s sluggish economy, particularly in nations like France, Germany, and Italy, which have been adversely affected by global trade tensions, notably those stemming from U.S. tariffs.
Source: Bloomberg
The eurozone’s inflation rate has decreased to 1.9%, falling below the ECB’s 2% target for the first time since September. ECB President Christine Lagarde highlighted that stronger labor markets, increasing real incomes, and more accessible financing conditions are expected to support economic stability. Despite these measures, the ECB anticipates continued economic challenges and has not ruled out further rate cuts if trade tensions escalate. Lagarde also reaffirmed her commitment to serve her full term until 2027, amidst speculation about a potential early departure.
Source: Bloomberg
On June 5, 2025, Tesla’s stock plummeted by 14.2%, erasing approximately $152 billion from its market value, following a public feud between CEO Elon Musk and President Donald Trump. The dispute escalated through social media, with Trump threatening to cut government subsidies and contracts critical to Tesla and SpaceX, while Musk called for Trump’s impeachment and criticized his policies. This clash not only impacted Tesla’s valuation but also reduced Musk’s personal wealth by $8.73 billion. The fallout raises concerns about potential regulatory risks to Musk’s ventures.
Source: Bloomberg
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